Credit scores and what shows on your credit report can make all the difference in getting that new home or car that you are wanting to purchase. Even if your credit scores are good enough to get the loan, the lower the score the higher your interest rates will be. There are ways to repair your credit report and increase your scores. Bad credit can be repaired to allow you to get the loan. Good credit can also be repaired to allow for you to get the loan at an interest rate that will save you a lot of money.
Another thing that you must remember is that no matter how high your credit scores are, you are still going to have trouble getting that loan or having to pay high interest rates if your credit report shows a lot of derogatory or paid late accounts. Now it is better to show a paid in collection account than it is to show an account with an unpaid balance that is in collection.
You can pay someone a lot of money to fix your credit report for you. These fees can become very high and long term. By law you can do the exact same thing that these companies are offering for a lot of money for a very small expense.
First obtain a copy of your credit report directly from the credit bureaus yourself. You will have to pay a small amount of money to obtain these reports yourself if you have already used your free annual credit report. You Do Not want to obtain a three in one credit report. The reason you want your own credit report is that you will need to have the confirmation number at the top of your credit report from each credit bureau. This confirmation number will allow you to dispute anything on your credit report that you want to dispute.
Now before calling the credit bureaus and disputing anything. Look your report over very closely. Now call the creditors directly that you owe. You are going to pay them what you owe them. Sometimes they will allow you to settle for a lower amount if you do not have the full amount. No matter how you pay them there is a key thing you need to ask them before you pay them any money. Ask them if they delete. Most often they will say yes if you ask them. Now you need to pay them and ask them to fax you the delete letter.
With this delete letter in hand you can call the credit bureaus that this account was reported to and tell them that you have a delete letter and ask them for their fax number. Then all you have to do is fax it to them. They will tell you that it can take up to 30 days to remove this item off your credit report, but in most cases it only takes a few days to a week.
The reason you are going fax crazy is that it can take longer if you use the mail system to get things going to clean up your credit report. Now if they do not delete that is alright also. Pay them and ask them to fax instead of mailing you the letter showing that the debt has been paid in full. Do the same thing with this letter as you would have with the delete letter.
A delete letter will remove this from your credit report completely as if it never existed. For each negative item deleted you can see your scores increase up to 20 points. This works perfect to get your credit report to looking good and increasing your scores.
Now if all they will give you is a letter showing the debt was paid that is still going to help you a little bit in the short term but you can still fix it later in the long term. Lenders won’t like seeing the collection accounts paid late on your credit report but they will over look them quicker than they will non-paid past due accounts.
You can clean up your credit report of old paid late collection accounts. To do this call up the credit bureaus and inform them that you paid the accounts and would like to have them removed. These are old unused accounts. The credit bureaus will them contact the creditor and give them 30 days to respond. Most of the time the creditor will not worry with this since you had already paid them their money. When the 30 days are up and the creditor does not respond, the credit bureau has no choice but to remove it from your credit report.
There are ways to clean up your credit report without ever having to pay off your debts, but let’s face it that is not a long term solution. The creditor is still owed the money that you owe them and can still put it right back on your credit report later. So to ensure long term solutions pay them what you owe them or make a settlement offer with them.
How does this fix your credit scores and clean up your report quickly then? Well for starters you are doing all the legwork. By having them fax you the delete letter or letter showing you paid, you are saving days to weeks off getting your credit report and scores updated. Now they will tell you that they will report to the credit bureau but you are not going to wait 30 to 90 days for them to do this. You are going to call the credit bureau and fax the letter over yourself.